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The Malaysian Trades Union Congress (MTUC) has launched a nation-wide campaign urging the government to repeal amendments to the Employment Act, which would legalize labour contractors. 
 
The MTUC has been lobbying against these amendments since the bill was originally submitted to Parliament in July 2010. At that time, due to opposition from other political parties and trade unions, the government withdrew the bill. The amendments were re-introduced, with minor changes, in June 2011. Since then, the MTUC has been outspoken against the bill but, despite a picket at the Parliament on 3 October, the bill was passed by the majority Members of Parliament of the Ruling Party on 6 October. 
 
The proposed amendments would introduce &ldquo;contractors for labour&rdquo; into Malaysian legislation and create triangular employment relationships in which workers would be employed and paid by a contractor, rather than by the company in which they work. The amendments would also open the way for unequal treatment of workers with respect to wages and benefits. 
 
The MTUC further opposes deferred payment of overtime which, as laid out in the bill, would mean that contract workers would not receive remuneration for overtime until one month later, so that the principal employer time to pay the contractor for labour that in turn pays the contract workers. 
 
The MTUC is committed to pursuing &ldquo;all avenues available&rdquo; until the amendments to the Employment Act are withdrawn.

Malaysian Nation Labor Centre Decries Legislation Opening Door for Contract Labour

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The Irish union, Services, Industrial, Professional and Technical Union (SIPTU), is fighting attempts by the government of Ireland to dilute the provisions of the European Union Temporary Agency Workers&rsquo; Directive, which comes into force across Europe on 5 December. 
 
The Directive, which was passed in 2008, states that &ldquo;The basic working and employment conditions of temporary agency workers shall be, for the duration of their assignment at a user undertaking, at least those that would apply if they had been recruited directly by that undertaking to occupy the same job.&rdquo; 
 
The Directive applies from day one of an assignment, and further states that temporary agency workers have the right to be informed about permanent employment opportunities in the user enterprise and must have improved access to training and childcare facilities in periods between assignments, in order to enhance employability. 
 
Under the Directive derogation from the principle of equal treatment is permitted provided an agreement can be reached between a state&rsquo;s social partners. In an eleventh hour attempt, Irish Minister for Enterprise and Jobs Richard Bruton has called for a derogation which would mean that an agency worker would only be entitled to equal treatment after six months, rather than from the first day of employment. 
 
In a letter to the Irish Congress of Trade Unions (ICTU), Bruton said, &ldquo;Without the benefit of some leeway in transposing the directive in the shape of a framework agreement, Ireland will be in a position of significant competitive disadvantage, vis-a-vis our European trading partners,&rdquo; adding, &ldquo;In the current climate and with the significant challenges that face us on the road to economic recovery, we must avail of the flexibilities afforded by the directive.&rdquo; 
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Patricia King
Patricia King, Vice President of SIPTU, has made clear that the union is opposed to any attempt by the government to seek a derogation. King said, &ldquo;We do not see any reason for a derogation to be applied. Why would we? If someone is entitled to equality of treatment, they are entitled to it and there is no reasonable argument being put forward, that I can see, for us to agree to the derogation.&rdquo; 
 
&ldquo;If somebody is employed to do a job, which commands a certain skill, background knowledge and experience, and they put themselves forward for that job and are capable of producing the goods, why would they not get the rate of pay on an equal basis as somebody who was doing the job already and who is going to work alongside them?&rdquo; 
 
Commenting on Bruton&rsquo;s claims that implementing the Directive would have a negative impact on jobs and economic growth, King said, &ldquo;All that is a code for not paying the rate and keeping people in low pay&rdquo;.

SIPTU Fights Attempts to Dilute EU Agency Workers Directive

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The Indonesian national government and Papua province Manpower officials will both participate in bargaining today in Timika, Papua, in further attempts to resolve the wage and benefit issues behind an 11-week strike. The strike is against US-based Freeport-McMoRan by the PT Freeport Indonesia Workers&rsquo; Union of the Chemical, Energy, Mine Workers Union (CEMWU), or SP KEP SPSI. 
 
Meanwhile, as talks continue into the fifth straight week with little progress to report, the union this week is making plans to issue another official notice to extend the strike a fourth time, again a 30-day extension that will continue the stoppage from 15 December to 15 January 2012. Some 10,000 mineworkers have blocked all production from Freeport-McMoRan&rsquo;s Grasberg mines, the world&rsquo;s largest recoverable gold and copper deposits, since the first 30-day strike began on 15 September. 
 
In a report on bargaining to the ICEM late last week, leaders of PT Freeport Workers&rsquo; Union said management has not moved off an average 35% wage offer over two years. (See previous <a href="/en/78-ICEM-InBrief/4784-Indonesian-Miners-Resume-Talks-Again-Today-with-Freeport-McMoRan">ICEM report</a>.)&nbsp; 
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The union is seeking uniform wage increases for all workers, with a goal of US$7.50 per hour for non-staff workers in the second year. Workers earned a wage of between US$2.13 per hour and US$3.54 at the start of the strike. 
 
The union is seeking a fixed metal bonus scheme, while the PT Freeport Indonesia (PTFI) subsidiary is insisting on a bonus tied to the company&rsquo;s variable costs. The company has rejected the union&rsquo;s demand for monthly Housing, Education, and Risk Allowance Work benefits of two million rupiah each (&euro;165, US$222) and a daily premium for shift work of 100,000 rupiah (&euro;8.26, US$11). The union met with Indonesia&rsquo;s National Wage Council on Friday over the company&rsquo;s effort to impose a wage deal through the government&rsquo;s mediation process. 
 
The ICEM believes Freeport-McMoRan must do better in its wage and benefits offer to Grasberg miners, many of whom work 12-hour shifts in 4,200- metre altitudes and have an excruciating roster schedule in which they work five days on, two days off, followed by six days on and one day off, and then four days on, three days off. 
 
But if the company wants a return to production and an end to Indonesia&rsquo;s longest work stoppage, it must break from pressures being exerted by other extractive industry employers to hold down wage and benefit offers so their workers do not follow the example set by the PT Freeport Workers&rsquo; Union. Again, PTFI must make a more conciliatory contract offer and the company should take note on how Newmont Mining and Sumitoma Corp. two weeks ago ended a four-day strike at their 49% copper and gold holdings called Batu Hijau on Indonesia&rsquo;s Sumbawa Island. They acceded to workers&rsquo; demands for adequate compensation on overtime work.

Indonesian Mine Talks Continue Today; Union Ready with Another 30-day Strike Notice

The International Federation of Chemical, Energy, Mine and General Workers&rsquo; Unions (ICEM) today signed a Global Framework Agreement (GFA) with Petr&oacute;leo Brasileiro SA, or Petrobras, the world&rsquo;s third largest energy company. The agreement, the 20-million-member ICEM&rsquo;s 16th since 1998, was signed at the Brazilian company&rsquo;s headquarters in Rio de Janeiro by ICEM General Secretary Manfred Warda, and Petrobras Director for Gas and Industry, Maria Das Gracas Silva Foster, Executive Director for Human Relations, Diego Hernandes, and Joao Antonio de Moraes, General Coordinator of FUP (the Oil and Gas Workers&rsquo; Unified federation of Brazil). 
 
A GFA is a social pact between a multinational company and a Global Union Federation that puts in place the very highest standards regarding trade union and human rights, health, safety, and environmental practices, and quality of work principles across all of a company&rsquo;s global operations. 
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ICEM General Secretary Manfred Warda signs Petrobras GFA
&ldquo;This is ICEM&rsquo;s fourth such agreement with an oil and gas concern,&rdquo; said Warda, &ldquo;and it embodies many of the social principles that we expect companies in extractive industries to adhere to.&rdquo; The ICEM has previously negotiated GFAs with Statoil of Norway, Eni of Italy and Lukoil of Russia. 
 
The agreement was signed with approval from ICEM Brazilian trade union affiliate, the Oil and Gas Workers&rsquo; Unified Federation (FUP), whose leaders were present at the signing together with ICEM Latin America/Caribbean Regional Vice President Sergio Novais of Brazil. Support from both FUP and Sergio Novais was important in reaching the agreement. 
 
The agreement commits Petrobras to recognizing the right of freedom of association and to bargain collectively for all employees, as well as establishing formal dialogue channels between staff and management. It also promotes working conditions that are favorable to a balance between work, personal, and family life. 
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ICEM, Petrobras, FUP
The GFA states that Petrobras &ldquo;will strive to get all service providers to comply&rdquo; with nine labour relations points contained in the agreement, including health and safety and providing necessary equipment, permanent institutionalization of negotiation channels, and equal opportunities and promotion of training opportunities. 
 
The agreement also recognizes global standards contained in the ILO Tripartite Declaration on Principles for Multinational Corporations and Social Policy, the OECD Guidelines for Multinational Corporations, the Universal Declaration of Human Rights, and the UN Global Compact. 
 
Warda and Petrobras CEO Jos&eacute; S. Gabriella de Azevedo initiated talks on the ICEM-Petrobras GFA as board members of the Global Compact some three years ago. 
 
Petrobras, 56% owned by the Brazilian government, has 80,500 employees and operates in some 30 countries. The company is a leader in exploration and production of oil, and operates 16 refineries as well as numerous petrochemical, biofuels, pipelines and other installations. The ICEM is composed of 255 national trade unions operating in 94 countries. 
 
For further information, contact ICEM&rsquo;s Dick Blin (+41 79 734 8994, <a href="mailto:dick.blin@icem.org">dick.blin@icem.org</a>) or Tom Grinter (+41 22 304 1842, <a href="mailto:tom.grinter@icem.org">tom.grinter@icem.org</a>).

ICEM Signs 16th Global Agreement with Petrobras of Brazil

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Finland&rsquo;s papermaking unions, Paperiliitto and Ammattiliitto Pro, have new 25-month labour agreements with the Finnish Forest Industries Federation (FFIF) that take effect in March 2012. That was assured yesterday, 28 November, after the employers&rsquo; association in the transport, ports, and shipping industry signed&nbsp;an accord with AKT, the Transport Drivers&rsquo; and Port Workers&rsquo; Union. 

Even though the FFIF came to terms with the two ICEM affiliates separately in the pulp and paper sector last Wednesday, 23 November, the FFIF was unwilling to sign off on the agreement until they had a guarantee that&nbsp;strikes would not&nbsp;occur in the transportation and export of pulp and paper products.
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The agreement in the paper sector follows a framework agreement made between the three national trade union confederations &ndash; SAK, STTK and STTK &ndash; and the Confederation of Finnish Industries on 13 October. 

In March 2012, Ammattiliitto Pro members&nbsp;will receive a 1.6% across-the-board wage increase, in addition to an average 0.8% increase that will be negotiated locally and is part of a new salary structure. That amount will reward new work demands, personal skill developments, and greater efficiencies by workers on the local level.
Paperiliitto members will receive a 1.5% increase, with&nbsp;0.9%&nbsp;to be negotiated locally. 

Essentially, this new salary structure was recognized by employers through strike actions taken last spring by Ammattiliitto Pro, Finland&rsquo;s white-collar and clerical workers&rsquo; union, which represents about 4,000 staff at some 50 paper enterprises. 

In April 2013, the wage increase for Ammattillio Pro&nbsp;will be 1.3%, with a 0.6% award won on the new locally-negotiated salary structure. Paperiliitto's 2013 increase will be 1.2%, with 0.7% awarded locally.
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Two other important aspects of the pulp and paper agreement include extra protection for workers when mills close. In effect, employers take on more responsibility for re-training and skill development, as well as workers given the flexibility to take new work in another enterprise and still qualify for redundancy benefits. 

Also, shop stewards and safety representatives who receive slightly higher pay for their responsibilities will get a 10% supplement on top of that higher pay. The two unions also won a universal three-day paid leave annually for vocational training and education. 

Both Petri Vanhala, President of Paperiliitto, and Markku Palokangas, Pro&rsquo;s Vice President for the Industrial Sector, expressed satisfaction with the 25-month agreement, especially with&nbsp;the gains made&nbsp;through the national framework agreement. Paperiliitto represents some 19,000 blue-collar workers across Finland&rsquo;s pulp and paper industry.

Finnish Pulp, Paper Unions Make Gains in 2012-2014 Industry-wide Pacts

General Prosecutor of the Republic of Kazakhstan 
 
Dear Sirs Manfred Warda and Jyrki Raina, 
 
General Prosecutor of the Republic of Kazakhstan considered your appeal regarding strikes of oil and gas companies in Mangistau region. 
 
We draw your attention to the fact that from the very beginning and to the end of the strikes to all participating parties guaranteed rights to freedom of expression, realization of peaceful assemblies, protection of their rights and freedoms, including the courts, have been granted by the Constitution of the Republic of Kazakhstan 
 
The strikers' demands for better working conditions and increased wages with raising coefficients, which, in their opinion, were not taken into account, were the subject of proceedings in court and have been carefully, thoroughly, objectively and impartially investigated by a court with the participation of all stakeholders in the review of claim requirements of the employers to recognize strikes illegal. 
 
Court ensured full competition and equality of parties, right of the strikers (respondent) to be protected, independent election and protection of their position, qualified legal counsel, right to present evidence and participate in their study, to apply with requests and to give verbal and written explanations to the court. 
 
Upon review of the case the strikes at JSC &laquo;Ersay Caspian Contractor&raquo; (court decision of 05.18.2011), a joint-stock company &laquo;Karazhanbasmunay&raquo; (court decision of 20.05.2011), a joint-stock company &laquo;Ozenmunaygas&raquo; (court decision of 05.27.2011) and LLP &quot;Zhondeu &raquo; (court decision of 06.01.2011) have been recognized by the court illegal. 
 
Despite this, the government together with the TU representatives of the companies repeatedly, practically every day, before and after the recognition of the strikes illegal by the court, conducted outreach with the strikers on the unreasonableness of their demands. Their attention was drawn to the fact that in 2009, 2010 and 2011 the salary of the workers in these enterprises increased three times. During this period, their average salary has increased by 100 thousand tenge (or 690 U.S. dollars) and became 340 000 tenge (or 2300 U.S. dollars), which is today one of the highest in Kazakhstan. 
 
As a result of the above outreach large number of strikers returned to their jobs. 
 
Please also be advised that having sufficient legal grounds for dismissal, employment remained even for the organizers and active participants in the strike. The dismissal of some of them took place only after all measures on their return to work have been taken. 
 
Currently, the strike at these companies ceased. 
 
As part of the prosecution of A. Sokolova (Article 164, part 3, art. 334, part 2 of the Criminal Code of the Republic of Kazakhstan), K. Sisenbaev and A. Aminov (Art. 334, part 2 of the Criminal Code of the Republic of Kazakhstan), which were the main organizers of illegal strikes, we state that such persons are granted by the court with all procedural rights provided by law for the protection of the criminal process. 
 
The sentences in respect of such persons entered into force. K. Sisenbaev and A. Aminov fully acknowledged their guilt, and they didn&rsquo;t appeal against sentence in superior court. 
 
In addition, I draw your attention to the fact that the arguments about the frequent beatings and threats against the oil workers and their families were not confirmed. No appeals on such cases to the police of Mangistau region have been reported. 
 
The police of Mangistau region filed a suit on the facts of the murder of J. Turbaev and J. Karabalaeva under Art. 96 of the Criminal Code, under which appointed the judicial examination, interviewed relatives of the victims, residents and employees of nearby objects to the scene. Some other investigative actions aimed at the disclosure are carried out. 
 
The investigation of criminal cases is taken under control of the Prosecutor General&rsquo;s Office. 
 
Deputy Director-General 
Prosecutor of the Republic of Kazakhstan A. Kravchenko

Response to ICEM-IMF letter to Kazakhstan Government on Oilworker Strike

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ICEM General Secretary Manfred Warda conveyed the condolences of the organisation to its Turkish affiliates following the deadly earthquake that hit eastern Turkey on 23 October. The 7.2 magnitude quake killed at least 530 people, injured over 1,600, and destroyed well over 2,000 buildings. 
 
Warda expressed deep regret for the terrible events, especially in Van province and Ercis county, which bore the brunt of the quake, &ldquo;On this occasion on behalf of the ICEM family which represents 20 million workers around the world, I convey condolences and best wishes to the people of Turkey, and wish speedy recovery for those who are injured&rdquo;. 
 
ICEM affiliates and supporters are urged to donate to international humanitarian agencies in their own country, towards much needed recovery efforts. Hundreds of families rendered homeless by the quake now have their situation worsened by bad weather, including heavy snow and continued aftershocks.

ICEM Saddened by Disastrous Turkey Earthquake

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The Norwegian trade union Fellesforbundet has announced that Norway, in cooperation with the European Union, has created a &ldquo;Fund for Decent Work and Tripartite Dialogue&rdquo; targeted for 12 Eastern Europe and Mediterranean countries. The Norwegian Financial Mechanism is calling for applicants by social partners in the European Economic Area, with a deadline for applying of 31 March 2012. 
 
Fellesforbundet put the call out through the European Mine, Chemical, Energy Workers&rsquo; Federation (EMCEF) and <a href="http://emcef.org/database/uload/pdf/PA22call-20111020.pdf">details of the project</a> can be found here.&nbsp; 
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Innovation Norway, the sponsoring agent, said the total available for the 12 states is &euro;8 million, and a grant will cover 90% of approved project costs, and range from &euro;20,000-40,000 per project. The sponsor is seeking project proposals that promote decent work and/or tripartite dialogue; bilateral activities based but not mandated on the Norwegian model; partnership building between social partners; and other suggested proposals. 
 
Trade unions and employer organisations are encouraged to apply, as are public authorities and entities or social partnerships at the national, regional, or local level. Further details from <a href="http://emcef.org/database/uload/pdf/NorwegianFund20111020.ppt ">Innovation Norway</a> can be found here. 
 
The 12 countries covered under the call include: Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia, and Slovenia. Funding is available for each.

Norway Seeks East Europe Proposals for ‘Decent Wage, Tripartite Dialogue’ Fund

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A 23-month rubber strike by United Steelworkers (USW) Local 526 is getting renewed attention in Canada with the union broadening the dispute from picket lines to customers and creditors of the company. That company is Infinity Rubber, a producer of tubes and hoses for the US and Canadian auto and mining industries that tried to force extreme wage and benefit concessions after buying the enterprise from bankruptcy protection. 
 
Forty-eight union members went on strike on 1 December 2009 at a factory near Toronto, refusing to accept a 25% cut in wages and a 50% cut in benefits. A year earlier, workers did take a 10% wage decrease &ndash; from over C$20-an-hour to C$18 &ndash; to assist a predecessor company wracked by a financial crisis that deeply affected US industrial production. 
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The USW is now taking the fight to the doorsteps of customers, suppliers, and most significantly, a financial institution. On 27 October, some 900 union and community protestors, buoyed by the Occupy Toronto movement and the Canadian Union of Postal Workers (CUPW), loudly demonstrated in front of offices of the Bank of Montreal that is financing an equity agent that backs managers which bought the factory. 
 
Last month the USW began handbilling branches of the Bank of Montreal across the province of Ontario and earlier had sent letters to suppliers and customers telling them of the risks they face in doing business with Infinity. The union also is pressuring Bank of Montreal by asking trade unions to withdraw funds and divest pension assets held in the bank. (The <a href="http://www.usw.ca/workplace/campaigns/campaigns/infinity ">USW campaign</a> can be viewed here.) The company has continued to operate with the use of scab replacement workers hired through an employment agency. Strikers, mostly long-term Hispanic workers with loyal service to the previous owner, Biltrite Industries, are victimised by the fact that Ontario&rsquo;s government does not ban the use of replacement workers during strikes. 
 
At the 27 October manifestation, striking worker Fernando Silva said, &ldquo;We are still on strike because the government is allowing the company to hire agency workers, taking our jobs. We are entering our third winter in this fight. But with your support, we&rsquo;ll get though it.&rdquo;

Steelworkers Escalate Infinity Rubber Campaign in Canada

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A historical achievement happened in Indonesia on 28 October when the country&rsquo;s Parliament passed the Social Security Providers Bill (BPJS), thus clearing the way for long-awaited pension, medical, job-related accident, unemployment and other benefits to millions of ordinary Indonesians. 
 
The House of Representatives gave approval to the new law a plenary session when the six-party ruling coalition, which had worked to delay the legislation, was pressured by a mass rally outside Parliament to reach terms with the Indonesian Democratic Party of Struggle (PDI-P). 
<img alt="" src="" width="285" height="160" />
25,000 Manifested 28 October at Indonesia&rsquo;s Parliament
That rally, organized by the trade union/civil society coalition, Action Committee for National Social Security (KAJS), saw 25,000 Indonesians engage in a boisterous sit-in, demanding once and for all passage of the populist bill. BPJS means that the government must now implement compulsory social services mandated by the National Security System Law of 2004. 
 
Labour leaders, however, realize that the BPJS time frame for full implementation of the different social components leaves much room for politicians to maneuver, especially with federal elections coming in 2014. BPBJS I, or the scheme for heath care for all citizens, must come into effect by January 2014, while BPJS II &ndash; social benefits related to occupational accidents, pensions, old-age benefits, and death benefit schemes &ndash; must be implemented by July 2015. 
<img src="" width="106" height="110" alt="" />
D. Patombong Sjaiful
&ldquo;Yes, it was a momentous day,&rdquo; said ICEM Indonesian Affiliates&rsquo; Union Chairman D. Patombong Sjaiful, the leader of FSP-KEP, the Chemical, Energy, Mines, Oil &amp; Gas General Workers&rsquo; Union of confederation KSPI. 
 
&ldquo;But now it becomes a process to guard the intent of this new law and not let it get sidetracked by the political system.&rdquo; 
 
Said Iqbal, the KAJS General Secretary and President of the Federation of Indonesian Metal Workers&rsquo; Unions (FSPMI), agreed, stating that the process must be closely monitored in formulating and calculating sufficient costs for the different benefits. 
<img src="" width="86" height="110" alt="" />
Said Iqbal
&ldquo;This marks a fundamental change in Indonesian social security,&rdquo; he said. &ldquo;Now we are assured there will be a minimum level of pension benefits for all, that discrimination against the poor regarding health care will end, and that all working people will have some level of social benefits. 
 
&ldquo;We must now be vigilant that government and employers adequately fund these programmes.&rdquo; 
 
Said Iqbal led the KAJS coalition that included some 69 organisations, included 40 trade unions. The coalition, including farm organizations, fishery groups, and many more, included three of the country&rsquo;s main national labour centres, KSPI, KSBSI, and KSPSI. The coalition is expected now to be transformed into &ldquo;BPJS Watch.&rdquo; 
 
The new BPJS law re-makes the four state-owned insurance companies (PT Askes, PT Jamsostek, PT Taspen, and PT Asabari) into two non-profit public companies under the auspices of the President&rsquo;s office. PT Askes will function for the health care scheme, while PT Jamsostek will administer occupational accidents, pensions, old-age risks, and death benefits.

Vigilance Now Needed to Implement Indonesia’s Social Security Law

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